An ASIC regulated managed fund for the purpose of the Significant Investor visa is a managed investment scheme defined in the Corporations Act 2001 and regulated by the Australian Securities and Investment Commission. Any interests issued in the fund must not be able to be traded on a financial market and must be covered by an Australian Financial Services License.

Investments in ASIC regulated managed funds include any investments made through an Investor Directed Portfolio Service. For an ASIC regulated managed fund to qualify as a complying investment it must be limited to categories of investments specified by the Minister in a legislative instrument in writing.

These categories include:

Infrastructure projects in Australia.

Cash held by Australian deposit taking institutions.

Bonds issued by the Commonwealth or a State or Territory government.

Bonds, equity, hybrids or other corporate debt in companies and trusts listed on an ;

Australian stock exchange:

Bonds or term deposits issued by Australian financial institutions.

Real estate in Australia; and

Australian agribusiness.

The managed fund must be open to the general public and the fund manager must provide a compliance declaration on Form 1413 that their services would be limited to the categories of

Investments in Australia specified by the Minister in the legislative instrument.

Direct investment into Australian proprietary companies For a direct investment into an Australian proprietary company to qualify as a 'complying investment', the following criteria must be met:

The company must genuinely operate a qualifying business in Australia.

The applicant must obtain an ownership interest in the company.

The company must be registered with ASIC; and

The business must have an Australian Business Number.

Qualifying business:

The Migration Regulations 1994 define a qualifying business as an enterprise that:

(a) is operated for the purpose of making profit through the provision of goods,services or goods and services (other than the provision of rental property) to the public; and

(b) is not operated primarily or substantially for the purpose of speculative or passive investment.

Implementation of the Significant Investor visa is subject to:

the legislative change process and is expected to be implemented in November 2012. Due to this, the Department cannot respond to individual client specific inquiries. November 2012

Ownership interest:

The Migration Act 1958 defines ownership interest: In relation to a business, means an interest in the business as:

(a) A shareholder in a company that carries on the business; or

(b) A partner in a partnership that carries on the business; or

(c) the sole proprietor of the business.

Including such an interest held indirectly through one or more interposed companies, partnerships or trusts.

Residence Requirement:

To be granted a permanent Significant Investor visa, primary visa holder must be resident in Australia for at least 40 days for every year or part year that they have held a provisional Significant Investor visa. The residence period does not need to be met per year but can be met cumulatively over the time the primary visa holder held the provisional visa.

About the program:

The Business Innovation and Investment program is for migrants who have demonstrated experience and success in business or investment. The program will attract prominent business people and investors from across the globe and increase economic growth and innovation in Australia. Skill Select.

Skill Select is an on line service that enables skilled workers, business people and investors interested in migrating to Australia to record their details to be considered for a relevant visa through an Expression of Interest. Intending applicants for a provisional Business Innovation and Investment visa will record their proposed investment in Australia and once nominated by a State or Territory government will be issued an invitation by the Australian Government to lodge a visa application.

Noel Currie with Shanghai Chamber of Commerce Delegates at the Shagnhai Trade Mission.